Eskom load shedding forces platinum miners to limit underground operations

South African platinum mining companies said the worst-ever power cuts have forced them to limit underground operations.

Platinum and palladium supplies are threatened by ongoing power cuts that are implemented by Eskom.

Outages last year curbed output of the metals, and the power crisis that’s crimping the economy has worsened in recent months. The nation’s platinum-group metals production will likely fall this year, according to Impala Platinum Holdings Ltd.

The electricity crunch is definitely hurting South African industry and agriculture and the blackouts are expected to last at least two more years, threatening output in Africa’s most industrialised economy.

Miners such as Anglo American Platinum Ltd., Sibanye Stillwater Ltd., and Impala who have found it increasingly harder to run deep and aging shafts.

“If things don’t get better soon, then we are likely to have a worse period this year than last,” Impala spokesman Johan Theron said in an interview per Fin24.

“If it gets worse it will get to a point when you have certain days where we will stop sending people underground.”

South Africa mines roughly 70% of the world’s platinum and about 40% of all palladium, according to Metals Focus Ltd and both are mainly used in autocatalysts that cut auto emissions.

As things stand, state-owned utility Eskom Holdings SOC Ltd. can’t produce enough power from its old and poorly maintained plants.

Speaking for Anglo American Plc, spokeswoman Jana Marais they have emergency response plans to manage their employees safely.

“Our operations are running at the capacity required and as stable as possible to support grid stability,” said Marais.  

“We have emergency response plans to manage risks and evacuate employees safely in the event of prolonged power outages.”

For Sibanye Stillwater, James Wellsted lamented the blackouts and said they could lead to the early closure of some marginal shafts.

“How do you develop a mine in an environment where you are not sure whether you have got power or not?” Wellsted said.

“Nobody is investing in replacement ounces or growth in the industry.”